Group 6

Submitted by:
Sindhu KV-19111
Yashawini J-19112
Sowmya ch-19113
Swaroop B- 19115
Trupti MN- 19116
Varun K G-19117
Vignesh nayak K-19118
Vinod Bhat K- 19119
Vivek mitra-19120
 Governance and Sustainability at Nike
Introduction & Background of the company:
GOVERNANCE AND SUSTAINABILITY AT NIKE, Inc.
Nike was the world’s best footwear and the apparel company with its best-known brand and
over $20 billion in revenue. Several people had won the number of competitions by using
Nike’s brands like shoes, uniform, etc. The company even offers the infant version of iconic
shoes and much more. With the athlete footwear and the apparel products, Nike, had gotten the
rank first or second, globally among its competitors and had the market shares 25% in Asia and
44% in the US. Nike adopted the strategy of work globally can get close to the customer, made
them able to reach the revenue target of 28-30 billion till 2015 and they were very close to it at
the start of 2012. However, their basic strategy was the innovation, as they introduce a lot of
brands in China and the other countries and invested a lot in their market. They also built a link
with the Apple so that the athletes used the iPad and iPhone to share their tracks and activities.
The CEO of the company applied sustainable changes in the company and make its progress
better by resolving all issues.
Challenges:
 The company had done an excellent work since is starting but they only focused on brand
loyalty and try to give the best A-class products in many countries.
 The first challenge that the company has to face the bullish behaviour of Parker and the
executors’ team of the company toward the potential of innovation borne the environmental
and the social concern to make the future growth but their attitude toward employees was
not better.
 In 1990, the company was criticized for its labor practice and threatened for his brand
product with its core consumer, from the college students.
 One issue was the water supply issue for the supply chain of the Nike because, with the
world’s increasing population, the demand for water is also increasing but for the
manufacturing and the supply chain.
 Another issue was the code of conduct of violation, excessive labor issues with overtime
and contract with the factories in the year 2008. These have become the major issues for the
company that was needed to sort out immediately.
Recommendations:

 In the case of labor wages issue. They appointed Maria Eitel, as the vice president of the
corporate responsibility, who set about the consolidation the community affair department
and the labor practice team to create a more responsible corporate department.
 In environmental concern issue, the CEO of the company decided to make a commitment
by the name of Board-level Corporate Responsible Committee to see the issues of product
recycling, water use in the supply chain, and the releasing of the toxic substances. They
decided to end these issues up to 2020 by making several strategies in water supply,
emission of CO2 and wastage problem.
 The practices of the employees should support the environmental initiative and they restrict
the carbon footprint in order to make operations more sustainable.
 To meet the water issue, the company was launched its water program in 2001, provided
suppliers tools for water usage.
 The Company should be made better policies to address the issues of the environment.
 The company should focus on Byron’s ten principles as they are the basis of the fulfilment
of the ethical responsibilities of the company. They include integrity, veracity, fairness,
human dignity, participation, human commitment, social responsibility, the common good,
subsidiarity, and love.